The 2021 Reinventing Our Communities (ROC) Cohort Program is a 10-month training program for cross-sector community cohorts to promote equitable small business recovery from the pandemic. The 2021 program targets nine communities across the U.S., bringing together experts and stakeholders that will lead the training program. These communities are: Allentown/PA, Broward County/FL, Charleston/SC, Chester County/PA, Lancaster/PA, Las Vegas/NV, St. Cloud/MN, Wayne County/PA, and York/PA.
The program consists of four core areas: racial equity training, economic development training, technical assistance, and building a racial equity plan.
In order to reinvent our communities through structural change, the Community Development function of the Federal Reserve Bank of Philadelphia must support local-level capacity building on racial equity. Structural change requires local-level capacity to think, plan, and engage on racial equity, leading to community-led solutions for local challenges.
We define racial equity as just and fair inclusion in an economy in which all can participate, prosper, and reach their full potential, and race can no longer predict life outcomes (adapted from GARE and PolicyLink).
Racial inequities are deep and pervasive across local policy areas. Intentional, structural, and race-explicit strategies are needed to achieve meaningful and sustainable advances in racial equity and equitable pandemic recovery.
Merging racial equity training with an applied small business focus enables cohorts to translate the theoretical to the practical and builds their capacity to apply a racial equity framework to specific issue areas.
The ROC Cohort Program goals are built on a Frame, Learn, and Apply model, enabling cohorts to:
The cohort teams will embark on a learning journey that will give them the tools to create a multiyear racial equity plan for equitable small business recovery and growth . The first part of the training will be lead by Race Forward, and the second part of the training will be focused on small business support training.
In 2017, Race Forward united with the Center for Social Inclusion. Founded in 1981, Race Forward brings systemic analysis and an innovative approach to complex race issues to help people take effective action toward racial equity. Founded in 2002, the Center for Social Inclusion catalyzed community, government, and other institutions to dismantle structural racial inequity and create equitable outcomes for all.
The COVID-19 pandemic has disproportionately impacted small businesses owned by people of color, accelerating existing systemic inequalities in small business ownership, growth, and access to credit. Prior to the pandemic, 58 percent of Black-owned businesses were at risk of financial distress, compared with 27 percent of White-owned businesses.1
Since March 2020, Black-owned businesses have closed at more than twice the rate of White-owned businesses and experienced steeper cash balance declines. Latino- and Asian-owned businesses have also experience disproportionate closures and declines in cash balances.2 Barriers to the Paycheck Protection Program (PPP) and other public and private relief programs, and accelerated financial distress contributed to 41 percent of Black-owned US businesses going into closure from February to April 2020.3
The closure of small businesses owned by people of color impacts the household wealth of business owners and affects employee job losses. If programs are not designed to address the systemic barriers facing business owners of color, inequalities are expected to worsen, and business closures will negatively impact regional economies.4 Developing program and policy responses that center racial equity in small business support, recovery, and future growth will provide direct support for business owners of color and likely create ease and access for others, moving toward an inclusive economy for all.
Learn More About Their Progress
The ROC cohort launched the ROC Loan, hired a Community Engagement Coordinator, hosted the president of the Federal Bank of Philadelphia, and launched the ROC Giving Circle. The next steps for the Lancaster ROC Cohort are filled with promise and impact. Read on to learn more about these ongoing initiatives.
Find out how the Lancaster ROC Cohort is building a strategy with BIPOC business owners for equitable small business recovery.
We once again want to invite BIPOC small business owners to a community conversation where the ROC cohort will be presenting a draft strategic plan. We hope to hear small business owners feedback on the multi-year plan given their current needs and future aspirations for our community.
